PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated
74
14. PREMISES AND EQUIPMENT continued
Movements from Jan 1, 2003 Beginning
Ending to April 30, 2003
Balance Additions
Deductions Reclassifications Balance Cost or Valuation
Direct ownership Land
345,517 -
- -
345,517 Buildings
1,063,216 5,864
- 730
1,069,810 Furnitures, fixtures, office
equipment and computer equipmentsoftware
1,632,417 48,501
7,351 807
1,674,374 Vehicles
36,656 2,711
- -
39,367 Construction in progress
432,796 125,460
- 1,537
556,719 Total CostValuation
3,510,602 182,536
7,351 -
3,685,787 Accumulated Depreciation And Amortization
Direct ownership Buildings
523,683 15,551
- -
539,234 Furnitures, fixtures, office
equipment and computer equipmentsoftware
1,005,966 73,581
10 -
1,079,557 Vehicles
22,171 1,737
- -
23,908 Total Accumulated
Depreciation and Amortization 1,551,820
90,869 10
- 1,642,699
Net book value Direct ownership
Land 345,517
Buildings 530,576
Furniture, fixtures, office equipment and computer equipmentsoftware 594,817
Vehicles 15,459
1,486,369 Construction in progress
556,719 2,043,088
Construction in progress as of April 30, 2003 is comprised of: Product and license - Core Banking System
488,671 Buildings
13,354 Others
54,694 556,719
The construction in progress was approximately 66 complete as of April 30, 2003. Management believes that there is no permanent impairment in the value of fixed assets as of December 31,
2004 and 2003, and April 30, 2003.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated
75
14. PREMISES AND EQUIPMENT continued
a. In accordance with the Decrees of the Minister of Finance KMK No. 211KMK.032003 dated May 14, 2003 and No. S-206MK.012003 dated May 21, 2003, Bank Mandiri engaged PT Vigers
Hagai Sejahtera, a registered appraisal company, to revalue the premises and equipment of the merged banks, BBD, BDN, Bank Exim and Bapindo as of July 31, 1999, in relation to the transfer
to Bank Mandiri of tax losses of these taxpayers which transferred assets to Bank Mandiri Note 27c.
Based on PT Vigers Hagai Sejahtera’s Valuation Report No. Ref-020-IVHSV03 dated May 26, 2003, the value of premises and equipment of the Bank and the corresponding increment in
value as of July 31, 1999 were as follows:
Fixed Assets
Market Value Book Value
Increment in Value
Land and buildings 4,427,510
843,414 3,584,096
Furniture, fixtures and equipment 438,086
275,370 162,716
Vehicles 19,604
355 19,249
4,885,200 1,119,139
3,766,061
PT Vigers Hagai Sejahtera’s opinion of the market value was based on “Indonesian Appraisal Standards” issued by the Indonesian Appraisal Companies Association GAPPI and the
Indonesian Society of Appraisers MAPPI.
In arriving at the market values, PT Vigers Hagai Sejahtera has taken into consideration the market data approach and cost approach valuation methodologies.
The results of the revaluation have been approved by the Directorate General of Taxation through Kepala Kantor Pelayanan Pajak Perusahaan Negara and Daerah through its Decision
Letter No. Kep-01WPJ.07KP.01052003 dated June 18, 2003.
Bank Mandiri has recorded the results of the revaluation on June 18, 2003, the date of approval from the Directorate General of Taxation, after deducting the relevant accumulated depreciation
for the period from August 1, 1999 to June 18, 2003. The net increment of premises and equipment of Rp3,046,936, involved land and buildings.
The recognition of the premises and equipment revaluation increment did not impact the Bank’s tax expense position, as the tax losses used to compensate the premises and equipment
revaluation increment had not been recognized as deferred tax assets by the Bank.
b. Bank Mandiri and Subsidiaries have insured their premises and equipment excluding land against physical lossdamage with PT Staco Jasapratama, PT Asuransi Raya and PT Asuransi
Dharma Bangsa for total coverage amounts of Rp3,342,230, Rp3,947,268 and Rp3,930,253 as of December 31, 2004 and 2003, and April 30, 2003, respectively. Management believes that the
insurance coverage is adequate to cover the possibility of losses arising in relation to premises and equipment.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated
76
15. OTHER ASSETS
December 31, December 31,
April 30, 2004
2003 2003
Receivables 3,256,714
2,819,848 2,810,862
Accrued income 1,145,139
1,634,516 3,232,512
Others - net 3,378,047
4,065,418 3,765,374
7,779,900 8,519,782
9,808,748
Receivables Receivables from the accretion in realizable value of the zero coupon instruments and deposits
placed with foreign institutions which serve as security for certain Subordinated Undated Floating Rate Notes SUFRNs which were issued by Bank Exim and BDN, and the effective reduction in the
principal liability of the SUFRNs which were issued by Bapindo, are as follows:
December 31, December 31,
April 30, 2004
2003 2003
SUFRNs classified as subordinated loans Note 29 Bank Exim SUFRNs
1,044,563 916,219
921,772 Bapindo SUFRNs
1,084,024 914,113
893,576 2,128,587
1,830,332 1,815,348
SUFRNs classified as loan capital
BDN SUFRNs Note 30 1,128,127
989,516 995,514
3,256,714 2,819,848
2,810,862
Accrued Income Accrued income primarily comprises accrued interest receivable from placements, securities,
Government Recapitalization Bonds, loans, and accrued fees and commissions.
